New Hampshire Public Utilities Commission authorized Public Service Company of New Hampshire (PSNH) to institute two different default energy rate schedules, a standard rate for those customers who have never left the utility for a competitive energy supplier and a discounted, albeit “above market,” rate for customers who took service with an alternative provider and then return to the utility’s default service. According to the utility, such pricing flexibility is necessary in order for it to compete effectively against other suppliers.
How to develop balanced revenue-backed financing to manage the impacts of governmental mandates.
Severe upward pressure on electric rates after a decade of stability has regulators, legislators, utility executives, consumer advocates, and myriad other stakeholders searching for solutions. Revenue-backed financing can mitigate many of these mandate-driven rate increases significantly. These programs must, however, be designed to eliminate the inefficiencies and inequities that can be associated with revenue set-aside programs.
Buyers generally acquire a mix of long- and short-term contracts, with the goal of finding the optimal trade-off between price and flexibility.
For both buyers and sellers, forward contracts guarantee the exchange of a known quantity of goods at a known price and for a given time frame. From the buyer's perspective, such a contract not only guarantees delivery of a critical good, at an agreed upon price, but also reduces the costs of procurement operations, as prices do not have to be negotiated continually.